South Company Is a Subsidiary of Pole Company and Is

question 52

Multiple Choice

South Company is a subsidiary of Pole Company and is located in Malaysia,where the currency is the ringgit.Data on South's inventory and purchases are as follows:
The beginning inventory was acquired during the fourth quarter of 20X3,and the ending inventory was acquired during the fourth quarter of 20X4.Purchases were made evenly during 20X4.Exchange rates were as follows:

-Based on the preceding information and assuming the U.S.dollar is the functional currency,what is the amount of South's costs of goods sold remeasured in U.S.dollars?

• A)$28,480
• B)$28,510
• C)$28,540
• D)$28,570

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Definitions:

Carrying Amount

The book value of assets and liabilities reported in the financial statements, considering depreciation or amortization.

Accounts Receivable

Funds that customers have yet to pay a company for the products or services they have received.

Contra Account

An account used in the ledger to offset the balance of a related account.